Beyond the Hourly Rate: Unpacking the True Cost of Professional Service

Written By James Goodwin

In today's fast-paced world, it's easy to look at a daily rate and make assumptions. At Goodwin Gardens, our charge-out rate can be as low as £250 (VAT inclusive) per day, and we know that might seem like a substantial figure at first glance. But, it's actually barely above minimum wage in real terms!

We believe in full transparency. That £250 isn't simply "take-home pay" for our staff; it's the fully burdened cost of delivering a professional, compliant, and high-quality service that you can trust.

So, what exactly does that £250 cover? Let's break it down before considering if a skill professional will work for £13 per hour?

As you can see, a significant portion of this daily rate ensures we meet all legal, ethical, and quality standards for our industry in the UK.

Let's look a little closer at what each segment provides for you, our client:

1. VAT (20%) - Your Investment in the UK Economy

The first portion of every £250 goes directly to Her Majesty's Revenue and Customs (HMRC) as Value Added Tax. This isn't profit for us; it's a mandatory tax that contributes to public services. For you, it signifies you're working with a legitimate, registered business.

2. Employer On-Costs - Ensuring a Happy, Compliant Workforce

  • Being a responsible employer means more than just paying wages. This segment covers:

  • National Insurance (NI) & Pension Contributions: Ensuring our staff have future security.

  • Paid Holiday & Sick Leave: Allowing our team to rest and recover, ensuring they are fresh and productive when on your project.

  • Statutory Training & Qualifications: Keeping our team up-to-date with the latest industry standards and safety protocols.

  • This commitment results in a motivated, loyal, and skilled team working on your project.

3. Overheads - Your Protection and Our Professionalism

This critical segment covers the essential costs of running a professional operation:

  • Public Liability & Professional Indemnity Insurance: Protecting you against unforeseen incidents and ensuring we are fully accountable for our work. This is peace of mind money.

  • Specialised Tools & Equipment: Investing in the right gear for efficient and effective project completion.

  • Ongoing Training & Continued Professional Development: Our team stays at the forefront of the industry, bringing you the latest techniques and best practices.

  • Operational Costs: Things like office space, administrative support, software, and travel contribute to seamless project management.

4. The Skilled Wage - Rewarding Expertise

Only after all these essential elements are accounted for does the remaining portion represent the actual "take-home" pay for our skilled staff. When you break it down to an hourly rate (based on a 7.5-hour day), this equates to approximately £13 per hour.

So £250 per day is only marginally above the UK minimum wage. Does this reflect a fair and sustainable living wage once all the complex costs of employment are covered? 

At £315 per day (VAT inclusive), this rate reflects the reality of employing high-level, skilled professionals. While the headline figure covers the total cost of delivery, the core of that investment is a £20 per hour gross wage for the specialist on your project.

We believe that paying a fair, skilled wage is the only way to ensure the quality and safety our clients deserve. 

When you see a rate significantly lower than this, it often means essential protections—like insurance, pension contributions, or VAT compliance—are being bypassed.

We value our team and believe in compensating them appropriately for their expertise and hard work.

5. Why This Matters to You

When you choose Goodwin Gardens Ltd, you're not just buying hours; you're investing in:

  • Reliability: A team that turns up on time, every time.

  • Compliance: A service that adheres to all UK legal and safety standards.

  • Protection: Full insurance coverage for your peace of mind.

  • Expertise: Skilled, continuously trained professionals dedicated to delivering the best results.

  • Sustainability: Supporting a business that contributes to the local economy and treats its employees fairly.

Next time you see a daily rate, remember the hidden value it encompasses. We're proud to operate transparently and deliver genuine quality that lasts.

Have questions about our services or pricing? Contact us today for a detailed quote.

James Goodwin
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